You are unemployed and you would like to apply for an unemployment loan, a personal loan, or a consumer loan? Is unemployment and a credit application compatible? Is it possible for an unemployed person to obtain a loan? This is the topic we will briefly address today. Discover credit for unemployed.
Difficult access to credit for the unemployed
We regularly receive credit requests from unemployed people. These are usually people who have recently lost their jobs and have been unemployed for a short time. Some unemployed people thus enjoy a comfortable asset base acquired during their professional lives.
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What determines the granting of credit is the seizability of income. In other words, credit can only be granted to a solvent person. That is to say, a person whose bank can easily seize income in case of default.
Unemployment benefits are not seizable, which hinders access to credit in principle.
The thresholds for the seizure of credit for the unemployed
The law has organized a progressive regime of income seizure (salaries). And in particular unemployment benefits (different regime from salaries).
Wage garnishment allows the creditor to seize part of the salary or the social allowance of the debtor for the repayment of his debt.
For income from activities other than the performance of a labor or apprenticeship contract, such as unemployment or sickness benefits, pension, etc., from January 1, 2013, the following limits must be applied.
| Net monthly income | seized part | amount seized |
| € 0 – € 1,069 | 0 % | 0 |
| < € 1,069.01 < € 1,149 | 20 % | € 15.80 |
| < € 1,149.01 < € 1,386 | 40 % | € 94 |
| + € 1,386 | net beyond € 1,386 | |
Unemployment benefits are therefore fully seizable beyond a monthly amount of € 1,386.
This means that below this amount, the creditor cannot seize your unemployment benefit in case of default. In this case, your access to credit is of course reduced and you have little chance of seeing your credit application accepted.
Existence of other guarantees
It may be that a person is unemployed after years of work during which he has acquired a comfortable asset base (e.g. house, car, savings, securities account).
If this unemployed person wants to submit a credit application, the credit intermediary (the broker) will carefully examine his asset situation and see to what extent he can find guarantees.
Most often, it will be a question of registering a conventional mortgage on a real estate property owned and free of charges by the unemployed person.
It should be noted that the mortgage loan is acceptable beyond a certain amount (generally € 25,000) given the notary fees that this type of credit generates.
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